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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 63330
Experience:  Qualified Solicitor
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I have an issue with my employer not paying me monies owed

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hi. my name is***** have an issue with my employer not paying me monies owed and require legal advise on how best to recover.
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: i have worked for them for almost 6 years and am also a small share holder having bought into the business a few years ago.
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: Employee. Small share holder. no union
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

How much are you owed and how long has it been outstanding for? Please also confirm what the monies are actually owed for?

Customer: replied 4 months ago.
Hi Ben. bear with me its complicated. firstly i invested £20000 into the business as an investment for my future. that was a measured investment and i was fully aware of the risks involved in any investment. that was firstly in the summer of 2014 and then again in the summer of 2015. (2 separate £10000 investments) in October 2017 the business as it was then Meddo (CN) Ltd was placed into voluntary administration by its owner, Mr Garvis Snook and bought by its parent company Meddo Ltd. at that point we contacted all of our creditors to inform them but to assure them that if they continued to offer us a credit facility they would not get wrapped up in the administration of the business and would be fully paid by the new business. during the period of waiting for the new trade accounts to be opened i agreed to purchase some materials in order to keep part of the business trading. i was assured that these would be paid back as part of my expenses at the end of the month. they totalled in the region of £12000. i later transferred these monies onto a CC and the business has been making monthly payments against them (the minimum) i am also owed £3500 bonus from 4 years ago and a further £2100 from monthly expenses this July, August and September. i have spoken to my MD on numerous occasions and keep being told then they will be settled up when the business is able. it is becoming more apparent that the business is failing again and i need to get my monies out. i have thought about serving them a statutory demand but i really need advise on how to do this quickly before its too late. thank you.
Customer: replied 4 months ago.
i should mention that i am a senior manager within the business and am privy to details which leads me to believe the business could fail at any time.

OK thank you. I will get back to you with my answer as soon as I can, which will be at some point today. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Many thanks for your patience. As these payments do not amount to wages you would not be able to use the Employment Tribunal and would instead have to go through the County Court.

If a party wishes to pursue another for a debt arising out of a dispute between them, they can do so by making a claim in the civil courts. As legal action should ideally be used as a last resort, there are certain steps that should be taken initially to try and resolve this matter informally and without having to involve lawyers or the courts. These can be summarised below and it is recommended the following procedure is followed to try and progress this matter further:

1. Reminder letter – if no informal reminders have been sent yet, one should be sent first to allow the other party to voluntarily settle this matter.

2. Letter before action – if informal reminders have been sent but have been ignored, the other party must be sent a formal ‘letter before action’ asking them to resolve this amicably within a specified period of time, usually 7 to 14 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to pursue them for the debt in question. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.

3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to Once the claim form is completed a copy will be sent to the other side and they will have a limited time to defend it. Once they are aware that legal proceedings have commenced it may also force them to reconsider their position and perhaps prompt them to contact you to try and resolve this.

4. As an alternative to legal action a debtor can be issued with a formal statutory demand. This is a legal request which asks the debtor to pay the outstanding debt within 21 days and failure to do so would allow the creditor to bankrupt the debtor (if they are an individual) or wind up the company (if they are a business). The minimum amounts owed to be able to issue a statutory demand are £750 if the debtor is a company or £5,000 if they are an individual. For the relevant forms to serve a statutory demand see here:

As a final tip, it is always advisable to keep copies of any correspondence sent and received as the courts would like to refer to it if it ever gets that far.

Does this answer your query?

Customer: replied 4 months ago.
Thank you. It helps but I have email correspondence from the MD in November 2018 assuring me that the debt would be paid in the next few weeks. I don’t understand why expenses incurred are not classed as salary costs.
Customer: replied 4 months ago.
Sorry. November 2017.

Expenses are specifically excluded from the definition of wages under the Employment Rights Act 1996

Customer: replied 4 months ago.
Thank you.

All the best

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